The person concerned applied to have his FIS payment renewed from 30th August 2012. His average earnings were calculated having regard to his earnings in the year ended 31 December 2011, the latest available P60. His most recent payslips were also examined but these gave him a higher weekly net income than his P60. The income from his P60 was used in his FIS assessment as this gave a more representative view of his net income over a longer period of time and resulting in him qualifying for a more favourable rate of FIS.
It appears that the income of the person concerned changed again from October 2012. However as his entitlement to FIS is determined from 30th of August 2012 for 52 weeks, income changes from October 2012 will not be taken into account until his renewal application in August 2013.
An integral part of the FIS scheme is that once the level of payment is determined, it continues to be payable at that rate for a period of 52 weeks, provided that the person remains in full-time employment. The rate of payment may be increased if an additional child is born during the 52 week period.
On the other hand, the rate of payment will not change if there is an increase or decrease in the recipient’s earnings. A key advantage of this approach, which is unique to the FIS scheme, is that claimants can be certain that they will receive a guaranteed level of income support throughout the period. This certainty is important to the success of the scheme as it provides a real incentive to workers with families to avail of employment opportunities.
